model economic township limited - reliance industries
TRANSCRIPT
1MODEL ECONOMIC TOWNSHIP LIMITED
MODEL ECONOMIC TOWNSHIP LIMITEDFINANCIAL STATEMENTS
2016-17
2 MODEL ECONOMIC TOWNSHIP LIMITED
To Board of Directors
Model Economic Township Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Model Economic Township Limited (“the Company”),
which comprise the Balance sheet as at 31st March, 2017, the Statement of Profit and Loss (including Other Comprehensive Income)
and the Cash Flow Statement and the Statement of Changes in Equity for the year then ended and a summary of significant accounting
policies and other explanatory information.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (“the Act”) with
respect to the preparation of these standalone Ind AS financial statements that give a true and fair view of the state of affairs (financial
position), profit or loss (financial performance including other comprehensive income ), cash flows and changes in equity of the
Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind
AS) prescribed under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable and prudent; and maintenance of adequate internal financial
controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation
and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into
account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit
report under the provisions of the Act and the Rules made thereunder. We conducted our audit in accordance with the Standards on
Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial control relevant to the Company’s preparation of the standalone Ind AS financial statements that
give a true and fair view in order to design audit procedures that are appropriate in the circumstances but not for the purpose of
expressing an opinion on whether Company has in place an adequate internal financial control system over financial reporting and the
operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of the accounting estimates made by the Company’s directors, as well as evaluating the overall presentation of the
standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS
financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial position) of the Company
as at 31st March, 2017 and its loss (financial performance including other comprehensive income), its cash flows and changes in equity
for the year ended on that date.
Independent Auditor’s Report
3MODEL ECONOMIC TOWNSHIP LIMITED
Other Matter
The comparative financial information of the Company for the year ended 31st March 2016 and the transition date opening balance
sheet as at 1st April 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory
financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006, audited by us, our report in
respect of previously issued statutory financial statements for the year ended 31st March 2016 and 31st March 2015 dated 9th April,
2016 and 11th May, 2015 respectively expressed an unmodified opinion, as adjusted for the differences in the accounting principles
adopted by the company on transition date to the Ind AS, which have been audited by us.
Other Matters- restriction of use
The Company has filed a scheme of amalgamation of Devashree Commercials Private Limited, Girisha Commercials Private Limited,
Cluster Commercial Private Limited and Dignity Mercantile Private Limited with it which is pending for necessary approval. These
financial statements have been prepared to assist Reliance Industries Limited, ultimate holding company to prepare its consolidated
financial statements for the year ended 31st March, 2017 and the financial statements may undergo change when the scheme of
amalgamation being approved. Accordingly these financial statements may not be suitable for another purpose. Our report is intended
solely for the company and its holding company and should not be distributed or used by parties other than for the preparation of
consolidated financial statement of holding company. We hereby provide consent that a copy may be provided to auditors of holding
company.
For Chaturvedi & Shah
Chartered Accountants
Firm Reg. No. 101720W
R. Koria
Partner
Membership No.:- 35629
Place: Mumbai
Dated: 10th April, 2017
4 MODEL ECONOMIC TOWNSHIP LIMITED
Notes As at As at As at31st March, 2017 31st March, 2016 1st April, 2015
(`) (`) (`)
ASSETSNon-Current Assets(a) Property, Plant and Equipment 3 144 68 217 1 41 39 431 1 44 18 659(b) Intangible assets 3 84 704 1 23 272 1 61 497(c) Financial Assets
(i) Investment 4 4 00 000 75 000 5 00 000(ii) Other Financial Assets 5 9 91 52 234 8 47 30 767 8 59 44 117
(d) Other Non Current Assets 6 9 18 16 535 7 33 34 349 7 36 79 088
Total Non -Current assets Current assets 20 59 21 690 17 24 02 819 17 47 03 361
(a) Inventories 7 6509 54 15 805 6141 62 37 879 5531 68 66 681(b) Financial Assets
(i) Trade Receivables 8 11 43 396 3 61 740 38 14 570(ii) Cash and cash equivalents 9 1 33 14 661 46 15 742 34 06 028(ii) Other Financial Assets 10 17 68 510 19 35 169 21 75 049
(c) Current Tax Assets (Net) 11 90 41 354 1 15 19 738 96 57 971(d) Other Current Assets 12 60 56 29 064 29 84 78 244 24 22 70 537
Total Current assets 6572 63 12 790 6173 31 48 512 5557 81 90 836
TOTAL ASSETS 6593 22 34 480 6190 55 51 331 5575 28 94 197
EQUITY AND LIABILITIESEquity(a) Equity Share Capital 13 97 00 00 000 97 00 00 000 5 00 000(b) Other Equity 14 4142 09 32 589 23 35 44 223 14 86 43 478
Total Equity 4239 09 32 589 120 35 44 223 14 91 43 478
LiabilitiesNon-Current Liabilities(a) Financial Liabilities
Borrowings 15 1942 59 00 000 5331 34 00 000 4871 24 00 000(b) Provisions 16 13 51 10 937 16 44 91 892 12 96 32 258(c) Deffered Tax Liablity (Net) 17 7 62 22 460 8 85 12 040 8 97 43 107
Total Non-Current Liabilities 1963 72 33 397 5356 64 03 932 4893 17 75 365
Current Liabilities(a) Financial Liabilities
(i) Trade payables 18 2 58 00 864 1 70 38 248 1 83 33 766(ii) Other financial liabilities 19 331 79 24 045 662 95 72 396 619 60 07 521
(b) Provisions 20 6 83 68 579 4 52 03 578 5 87 25 670(c) Other Current Liabilities 21 49 19 75 006 44 37 88 954 39 89 08 397
Total Current Liabilities 390 40 68 494 713 56 03 176 667 19 75 354
Total Liabilities 2354 13 01 891 6070 20 07 108 5560 37 50 719
Total Equity and Liabilities 6593 22 34 480 6190 55 51 331 5575 28 94 197
Significant Accounting PoliciesSee accompaning Notes to the Financial Statements 1 to 45
Balance Sheet as at 31st March, 2017
As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Shrivallabh Goyal Anil SharmaFirm Regd No :101720W (Director) (Director)Chartered Accountants DIN- 00021471 DIN- 05212373
R. Koria Sudhir Jain Dheeraj KandhariPartner (Chief Financial Officer) (Company Secretary)Membership No : 35629 Membership No : 084440 Membership No : A20934
Place : Mumbai Place : GurgaonDate :10th Apri1,2017 Date : 10th Apri1,2017
5MODEL ECONOMIC TOWNSHIP LIMITED
Notes 2016-17 2015-16
(`) (`)
Income
Revenue from Operations 22 41 13 24 378 116 74 74 399
Other Income 23 70 68 857 68 34 692
Total Income 41 83 93 235 117 43 09 091
Expenses
Changes in Inventories 24 (367 91 77 926) (609 93 71 198)
Employee Benefits Expense 25 10 84 73 471 8 18 58 387
Finance Cost 26 332 81 49 707 663 29 98 455
Depreciation and Amortization Expense 3 35 17 039 29 12 996
Other Expenses 27 73 65 88 048 46 88 73 814
Total Expenses 49 75 50 339 108 72 72 454
Profit/(Loss) before tax (7 91 57 104) 8 70 36 637
Tax expense
(1) Current Tax - -
(2) Deferred Tax (1 22 89 580) (12 31 067)
(3) Excess Income Tax Provision of earlier year written back - (3 02 314)
(1 22 89 580) (15 33 381)
Profit/(Loss) for the year (6 68 67 524) 8 85 70 018
Other Comprehensive Income
(a) Items that will be reclassified to profit or loss
Income tax relating to items that will be reclassified to profit or loss
(b) Items that will not be reclassified to profit or loss - -
Remeasurement of the defined benefit plan (49 44 110) (15 45 287)
Income tax relating to items that will not be reclassified to profit or loss - -
Total Comprehensive Income for the period (7 18 11 634) 8 70 24 731
Earning per equity share of face value of ` 10 each
(1) Basic (0.74) 2.18
(2) Diluted (0.74) 2.18
Significant Accounting Policies
See accompaning Notes to the Financial Statements 1 to 45
Statement of Profit and Loss for the year ended 31st March, 2017
As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Shrivallabh Goyal Anil SharmaFirm Regd No :101720W (Director) (Director)Chartered Accountants DIN- 00021471 DIN- 05212373
R. Koria Sudhir Jain Dheeraj KandhariPartner (Chief Financial Officer) (Company Secretary)Membership No : 35629 Membership No : 084440 Membership No : A20934
Place : Mumbai Place : GurgaonDate : 10th Apri1,2017 Date : 10th Apri1,2017
6 MODEL ECONOMIC TOWNSHIP LIMITED
Cash Flow Statements for the year ended 31st March, 2017
2016-17 2015-16(`) (`)
A: CASH FLOW FROM/ (USED IN) OPERATING ACTIVITIES:Net Profit/(Loss) before Tax as per Profit and Loss Statement (7 91 57 104) 8 70 36 637Adjusted for:Depreciation and Amortisation 35 17 039 29 12 996Provision for Estimated Cost Over Revenue (5 09 665) (1 29 970)Loss/(Profit) on Sale/ Discarding of Property,Plant & Equipment (Net) 41 735 6 46 923Other Comprehensive Income (49 44 110) (15 45 287)Interest Income (63 96 263) (64 65 852)Interest on Unsecured Loan 331 79 24 045 330 96 32 781 662 95 72 396 662 49 91 206
Operating Profit before Working Capital Changes 323 04 75 677 671 20 27 843Adjusted for:Non Current Assets & LiabilitiesOther Current Financial Assets 10 78 533 12 13 350Deffered Tax Liability (1 22 89 580) (12 31 067)Long Term Provisions (2 93 80 955) 3 48 59 633Long term Loans and Advances (1 84 82 185) (5 90 74 187) 3 44 739 3 51 86 655
Current Assets & LiabilitiesTrade Payables 87 62 616 (12 95 518)Other Current Liabilities 4 81 86 053 4 48 80 557Short Term Provisions 2 36 74 668 (1 33 92 123)Inventories (367 91 77 929) (609 93 71 195)Trade Receivables (7 81 656) 34 52 830Other Current Assets (30 70 16 003) (390 63 52 251) (5 60 56 037) (612 17 81 487)
Cash Generated (Used in) from Operations (73 49 50 761) 62 54 33 010Exceptional Item incurred due to Merger - 21 23 986Deferred Tax (1 22 89 580) (12 31 067)Excess Income Tax Provision of earlier year written back - (3 02 314)Tax Paid (Net of Refund of TDS) (24 78 384) 18 61 767
(1 47 67 964) 24 52 372
Net Cash Flow/ (Used in) From Operating Activities (A)(72 01 82 797) 62 29 80 639
B: CASH FLOW FROM INVESTING ACTIVITIES:Payment for Property, Plant & Equipment (43 27 866) (36 00 226)Proceeds from disposal of Property, Plant & Equipment 4 78 874 3 57 758Investment/Divestment (3 25 000) 4 25 000Bank Deposit with more than 12 months maturity (1 55 00 000) -Interest Income 64 28 104 65 54 064
Net Cash Flow (Used in) From Investing Activities (B) (1 32 45 888) 37 36 596
C: CASH FLOW FROM FINANCING ACTIVITIES:Proceeds from Long Term Borrowings 776 45 00 000 690 10 00 000Repayment of Long Term Borrowings (4165 20 00 000) (230 00 00 000)Proceeds From Issue of Equity Share Capital - 96 95 00 000Issue of Zero Coupon Optionally Fully Convertible Debentures 4125 92 00 000 -Interest on Unsecured Loan (662 95 72 396) (619 60 07 521)
Net Cash Flow (Used in) From Financing Activities (C) 74 21 27 604 (62 55 07 521)
Net Increase / (Decrease) in Cash and Cash Equivalents (A+B+C) 86 98 919 12 09 714Opening Balance of Cash and Cash Equivalents 46 15 742 34 06 028Closing Balnce of Cash and Cash Equivalents (Refer note no. 11) 1 33 14 661 46 15 742
Notes :(1) The above cash flow statement has been prepared under the “indirect method” as set out in Ind As-7-Cash Flow Statement(2) Figures in the brackets indicate outflow
As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Shrivallabh Goyal Anil SharmaFirm Regd No :101720W (Director) (Director)Chartered Accountants DIN- 00021471 DIN- 05212373
R. Koria Sudhir Jain Dheeraj KandhariPartner (Chief Financial Officer) (Company Secretary)Membership No : 35629 Membership No : 084440 Membership No : A20934
Place : Mumbai Place : GurgaonDate : 10th Apri1,2017 Date : 10th Apri1,2017
7MODEL ECONOMIC TOWNSHIP LIMITED
Statements of Changes in Equity for the year ended 31st March, 2017
A. Equity Share Capital
As at 31 March As at 31 March As at 1 April
2017 2016 2015
Numbers ` Numbers ` Numbers `
Equity Shares at the Begning of the year 9 70 00 000 97 00 00 000 50 000 5 00 000 50 000 5 00 000
Add: Shares Issued during the year - - 9 69 50 000 96 95 00 000 - -
Equity Shares at the End of the year 9 70 00 000 97 00 00 000 9 70 00 000 97 00 00 000 50 000 5 00 000
B. Other Equity
Reserve and Surplus
Equity Capital Retained Other items of Total
component of Reserve Earning Other
compund financial Comprehensive
instruments Income
(specify nature)
As on 01 April 2015
Balance at the beginning of the year 58 52 96 239 (65 30 32 525) (6 77 36 286)
Impact of first time adoption of IND AS 21 63 79 762 21 63 79 762
Restated balance at the beginning of the reporting period -
Total Comprehensive Income for the year -
Dividends -
Transfer to retained earning -
Issued during the Period -
Any other change (to be specified) -
Adjusted figure as per IND AS - 58 52 96 239 (43 66 52 763) - 14 86 43 476
As on 31 March 2016
Balance at the beginning of the year 58 52 96 239 (43 66 52 763) 14 86 43 476
Impact of first time adoption of IND AS 10 33 93 161 10 33 93 161
Merger Expenses adjusted during the year ( 21 23 986) ( 21 23 986)
Total Comprehensive Income for the year (1 48 23 143) ( 15 45 287) (1 63 68 430)
Dividends -
Transfer to retained earning -
Issued during the Period -
Any other change (to be specified) -
Adjusted figure as per IND AS - 58 31 72 253 (34 80 82 745) ( 15 45 287) 23 35 44 221
As on 31 March 2017
Balance at the beginning of the year 58 31 72 253 (34 80 82 745) ( 15 45 287) 23 35 44 221
Impact of first time adoption of IND AS -
Restated balance at the beginning of the reporting period - -
Total Comprehensive Income for the year (6 68 67 524) ( 49 44 110) (7 18 11 634)
Dividends -
Transfer to retained earning -
Zero Coupon Optionally Fully Convertible Debentures
Issued during the Year 4125 92 00 000 4125 92 00 000
Any other change (to be specified) - -
Balance at the end of the Year 4125 92 00 000 58 31 72 253 (41 49 50 269) ( 64 89 397) 4142 09 32 587
8 MODEL ECONOMIC TOWNSHIP LIMITED
A. CORPORATE INFORMATION
1. Model Economic Township Limited is public limited company having its registered office at Plot no. 77 B, third floor,
IFFCO Road, Sector 18, Gurugram-122015, Haryana. The Company was jointly promoted by Reliance Ventures Limited
(a subsidiary of Reliance Industries Limited) and Haryana State Industrial & Infrastructure Development Corporation
Limited (HSIIDC) in terms of the Joint Venture Agreement dated 19th June 2006 to develop and operate Special Economic
Zones (‘SEZ’) in Haryana.
Subsequent to the above, Governent of Haryana approved the expanded scope of the project to include Model Economic
Township (IMT framework) project with a combination of Special Economic Zone (SEZ), Domestic Tariff Areas (DTA),
Logistics Hub, Social Infrastructure etc. in addition to the SEZ. The Joint Venture Agreement has been terminated in
August, 2014. Presently, the company is carrying out development activities on three industrial colonies, for which licenses
were obtained and has continued to consolidate the purchased land as well as to coordinate and obtain various government
approvals etc.
2. The Company is unlisted entity and intermediate wholly owned subsidiary of Reliance Venture Limited and ultimate
subsidiary of Reliance Industries Limited and accordingly in view of Rule 2 of Companies (Accounts) Amendment Rules
2016 notified on 27th July, 2016, the provision related to preparation of Consolidated Financial Statements of the Company
and its subsidiary are not applicable to the Company and hence not prepared.
B. ACCOUNTING POLICIES
B.1 BASIS OF PREPARATION AND PRESENTATION
The financial statements have been prepared on the historical cost basis except for following assets and liabilities which have
been measured at fair value amount:
i) Defined benefit plans - plan assets,
ii) Annuity payment for furure period to land sellers,
iii) Lease rentals receivable from customers on long term lease
The financial statements of the Company have been prepared to comply with the Indian Accounting Standards (“Ind AS”)
including the rules notified under the relevant provisions of the Companies Act 2013.
Upto the year ended March 31, 2016, the Company has prepared its financial statements in accordance with the requirement of
Indian GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules 2006 and considered as
“Previous GAAP”.
These financial statements are the Company’s first Ind AS standalone financial statements.
Company’s financial statements are presented in Indian Rupees, which is its functional currency.
B.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Property, plant and equipment
Property, plant and equipment are stated at cost, net of recoverable taxes , trade discount and rebates less accumulated
depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly attributable
to bringing the asset to its working condition for its intended use net charges on foreign exchange contracts and adjustments
arising from exchange rate variations attributable to assets.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it
is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured
reliably.
Expenses incurred relating to project, net of income earned during the project development stage prior to its intended use,
are considered as pre - operative expenses and disclosed under Capital Work - in - Progress.
Depreciation on property, plant and equipment is provided using straight line method. Depreciation is provided based on
useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
Notes on Financial Statements for the year ended 31st March, 2017
9MODEL ECONOMIC TOWNSHIP LIMITED
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognition of property, plant and equipment are measured as the difference between the net
disposable proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset
is derecognised.
(b) Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.
Company as a lessor
For the assets given under finance lease, the lease premium received initially is recognised as income of the Company at the
inception of the lease. Annual lease rentals receivable in future are recognised at their present value. The corresponding
amount due from the lessee is included in the balance sheet as lease rents receivable.
Lease rents received by the Company are apportioned between finance income and reduction of the lease receivables so as
to achieve a constant rate of interest on the remaining balance of the lease. Finance incomeis recognised immediately in
Statement of profit and loss. Contingent rentals are recognised as income in the periods in which they are received.
(c) Intangible assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes trade discount and rebates less accumulated
amortisation/depletion and impairment loss, if any. Such cost includes purchase price, borrowing costs and any cost directly
attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts
and adjustments arising from exchange rate variations attributable to the intangible assets.
Subsequent costs are included in the assets’s carrying amount or recognised as a separate asset, as appropriate only when
it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured
reliably.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal
proceeds and the carrying amount of the asset and are recognised in the Statement of profit or loss when the asset is
derecognised.
A summary of the policies applied to the Company’s intangible assets is, as follows:
Particular Depreciation
Computer Software Over a period of 5 years
Others Over the period of agreement of right to use.
(d) FinanceCost
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised as part of
the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended
use.
All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.
(e) Inventories
Items of inventories are measured at lower of cost and net realisable value.
Inventory comprises of cost of Industrial Township and other Projects under development (Work-in-progress). Cost of
Inventory consists of cost of land, annuity cost, land development expenses, material, services, construction cost, interest
and finance charges and other expenses related to development of projects. In case inventory is purchased on deferred
payment basis, difference between the purchase price for normal credit terms and the amount paid on deferred payment
terms is recognized as interest expense during the credit period.
Notes on Financial Statements for the year ended 31st March, 2017
10 MODEL ECONOMIC TOWNSHIP LIMITED
(f) Impairment of non-financial assets
The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment
and intangible assets or group of assets, called cash generating units (CGU) may be impaired. If any such indication exists,
the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. Where it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
cash-generating unit to which the asset belongs.
An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset’s carrying amount exceeds its
recoverable amount. The Recoverable amount is the higher of asset’s fair value less costs to disposal and value in use.
Value in use is based on the estimated future cash flows discounted to their present value, using a pre-tax discount rate that
reflects current market assessment of the time value of money and the risks specific to the assets.
The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable
amount.
(g) Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it
is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
(h) Employee Benefits
Short Term Employee Benefits
The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by
employees are recognised as an expense during the period when the employees render the services.
Post-Employment Benefits
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a
separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and
Pension Scheme. The Company’s contribution is recognised as an expense in the Statement of Profit and Loss during the
period in which the employee renders the related service.
Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of
resignation/superannuation. The gratuity is paid at 15 days salary for every completed year of service as per the payment of
Gatuity Act 1972.
The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the
employees. The gratuity fund has been approved by the tax authorities.
The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method
and spread over the period during which the benefit is expected to be derived from employees’ services.
Re-measurement of defined benefits plans in respect of post-employment and other long term benefits are charged to Other
Comprehensive Income.
(i) Tax Expenses
The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of profit and loss, except
to the extent that it relates to items recognised in the comprehensive income or in equity. In this case, the tax is also
recognised in other comprehensive income or equity.
Notes on Financial Statements for the year ended 31st March, 2017
11MODEL ECONOMIC TOWNSHIP LIMITED
- Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities,
based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.
- Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability
is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end
of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting
period.
(j) Revenue recognition
Revenue from sale is recognised when the significant risks and rewards of ownership have been transferred to the buyer,
recovery of the consideration is probable, the associated cost can be estimated reliably, there is no continuing effective
control or managerial involvement with the goods and the amount of revenue can be measured reliably.
Revenue from or rendering of services is recognised when the performamce of agreed contractual task has been completed.
The agreement for sale or long term lease of land, including development and provision of infrastructure facilities/services,
where substantial risk & rewards are conveyed to buyer/lessee, is considered as sale of land. Revenue from such sale of
land is recognized on execution of sale/lease deeds, by which substantial risks and rewards are conveyed to Buyers/Lessee.
Revenue in respect of projects under development/construction is recognized on the “Percentage of Completion method”
of accounting which is the percentage of the actual cost incurred, including the cost of land and its development, to the total
estimated cost of the project subject to such actual cost being 25% or more of the total estimated cost. The estimated cost
of the project is based on company’s estimate of the cost expected to be incurred till the final completion of the project and
includes cost of land, annuity costs, construction and development expenses, materials, services, interest and finance
charges and other expenses related to development of projects. The estimates of the costs are revised periodically by the
Companyand effect of such changes in estimates is recognized in the period in which such changes are determined. Any
projected losses on agreements executed are recognized in full when identified. Recognition of revenue relating to agreements
entered into with the buyers, which are subject to fulfillment of obligations/conditions imposed by the statutory authorities,
is postponed till such obligations are discharged. When sale price is realized on deferred payment basis, the difference
between fair value of sale price receivable as per normal credit terms and sale price receivable over deferred payment terms
will be accounted as interest income over the credit period.
Interest income
Interest income from a financial asset is recognised using effective interest rate method.
Dividends
Revenue is recognised when the Company’s right to receive the payment has been established.
C. Critical accounting judgements and key sources of estimationuncertainty:
The preparation of the Company’s financial statements requires management to make judgement, estimates and assumptions that
affect the reported amount of revenue, expenses, assets and liabilities and the accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.
a) Depreciation and useful lives of property plant and equipment
Property, plant and equipment/intangible assets are depreciated/amortized over their estimated useful lives, after taking
into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation to be recorded during any reporting period. The useful lives and
residual values are based on the Company’s historical experience with similar assets and take into account anticipated
Notes on Financial Statements for the year ended 31st March, 2017
12 MODEL ECONOMIC TOWNSHIP LIMITED
technological changes. The depreciation/amortization for future periods is adjusted if there are significant changes from
previous estimates.
b) Recoverability of trade receivable
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision
against those receivables is required. Factors considered include the credit rating of the counterparty, the amount and
timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
c) Provisions
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition
and quantification of the liability require the application of judgement to existing facts and circumstances, which can be
subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.
d) Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or
Cash Generating Unit’s (CGU) fair value less costs of disposal and its value in use. It is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other assets or a groups of assets.
Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair
value less costs of disposal, recent market transaction are taken into account, if no such transactions can be identified, an
appropriate valuation model is used.
e) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected cash loss rates.
The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based
on Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting
period.
D. First time adoption of Ind AS
The Company has adopted Ind AS with effect from 1stApril 2016 with comparatives being restated. Accordingly the impact of
transition has been provided in the Opening Retained Earnings as at 1stApril 2015. The figures for the previous period have been
reinstated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.
a) Exemptions from retrospective application
(i) Business combination exemption
The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business
Combinations” to business combinations consummated prior to April 1, 2015 (the “Transition Date”), pursuant to which
goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of
transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions
of investments in subsidiaries/associates consummated prior to the Transition Date.
(ii) Share-based payment transactions
Not applicable.
Notes on Financial Statements for the year ended 31st March, 2017
13MODEL ECONOMIC TOWNSHIP LIMITED
(iii) Fair value as deemed cost exemption:
The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at
the transition date.
(iv) Leases exemption
On the transition date, for the assets given under finance leases, the lease premium received initially is recognised as
income of the Company at the inception of the lease. Annual lease rentals receivable in future are recognised at their present
value. The corresponding amount due from the leasee is included in the balance sheet as lease rents receivable. Lease rents
received by the Company are apportioned between finance income and reduction of the lease receivables so as to achieve
a constant rate of interest on the remaining period of the lease.
(v) Cumulative translation differences
Not Applicable.
(vi) Long Term Foreign Currency Monetary Items
Not applicable.
(vii) Investments in subsidiaries, joint ventures and associates
The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.
(viii) Decommissioning liabilities included in the cost of property, plant and Equipment
Not applicable.
Notes on Financial Statements for the year ended 31st March, 2017
14 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
3. P
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2015
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2016
2016
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2017
2016
2015
Tang
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Ass
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Bui
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23 9
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2 06
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17 5
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21 3
6 92
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1 68
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13 6
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13 1
4 63
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15
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40 8
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15MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
As at 31 March As at 31 March As at 1 April
2017 2016 2015
(`) (`) (`)
4. Non Current Investment
In Equity Shares of Subsidiary Companies
Unquoted at cost, fully paid up
10 000 (previous year Nil) Equity shares of ` 10 each
fully paid up of Girisha Commercials Private Limited 1 00 000 - -
10 000 (previous year Nil) Equity shares of ` 10 each
fully paid up of Devashree Commercials Private Limited 1 00 000 - -
10 000 (previous year Nil) Equity shares of `10 each
fully paid up of Dignity Mercantile Private Limited 1 00 000 - -
10 000 (previous year Nil) Equity shares of ` 10 each
fully paid up of Cluster Commercials Private Limited 1 00 000 - -
Nil Equity shares (Year 2015-2016, 50000 equity shares)
of ` 10 each fully paid up of Resolute Land - - 5 00 000
Consortium Projects Limited
4 00 000 - 5 00 000
Other Investment
Investment in Equity Shares
Unquoted fully paid up fair value through Profit and
Loss (FVTPL)
Nil (Previous year 7500) Equity shares of ` 10 each
fully paid up of Resolute Land Consortium Projects Limited - 75 000 -
- 75 000 -
Total 4 00 000 75 000 5 00 000
4.1. Aggregate value of
Unquoted Investments 4 00 000 75 000 5 00 000
5. Other Non Current Financial Assets
Lease Rent Receivable in Future (Refer note 39) 86 52 234 97 30 767 1 09 44 117
Bank Deposits with more than 12 months maturity 9 05 00 000 7 50 00 000 7 50 00 000
9 91 52 234 8 47 30 767 8 59 44 117
6. Other Non Current Assets
Security Deposits 34 42 197 34 42 197 36 13 197
Amount Recoverable from Prospective Customers 2 93 66 810 1 99 72 000 1 99 72 000
Prepaid Expenses 18 90 514 7 62 644 8 00 080
Balance with Service Tax Authorities 5 71 17 014 4 91 57 508 4 92 93 811
Total 9 18 16 535 7 33 34 349 7 36 79 088
16 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
As at 31 March As at 31 March As at 1 April
2017 2016 2015
(`) (`) (`)
7. Inventories
Work- in- Progress 6509 54 15 805 6141 62 37 879 5531 68 66 681
Total 6509 54 15 805 6141 62 37 879 5531 68 66 681
7.1. During the year, the Company has taken steps to consolidate the purchased land, undertaken land development activities in three
licensed industrial colonies, coordinated and obtained various government approvals etc. The developed land will be provided to
the end users for various purposes, such as industrial, residential, commercial etc. Presently, the intention of the Company is to
either sell the developed land or convey the land on long term lease with upfront lease premium which would qualify to be
finance lease as per the requirements of Indian Accounting Standard - 17 “ Leases”. Accordingly the Company has been classifying
the entire land as Inventory and also interest and finance charges of ` 332 15 77 781 incurred during the period (Previous Year
` 662 95 72 397) have been considered as part of Inventory.
7.2 Inventory includes land valuing ` 1 10 00 000 representing 2 acres vested with the company pursuant to scheme of amalgamtion
approved by Honarable High Court of Punjab & Haryana which is in the name of erstwhile company and yet to be transferred in
the name of Company in revenue records of the Government of Haryana.
8. Trade Receivables
Trade receivables outstanding for a period exceeding
six months from the date they are due for payment
Unsecured, considered good 3 06 803 3 61 740 2 92 990
Outstanding for a period less than six months from the date
they are due for payment
Unsecured, considered good 8 36 593 - 35 21 580
Total 11 43 396 3 61 740 38 14 570
9. Cash & Cash Equivalents
Cash on Hand 67 53 481 21 32 546 11 19 019
Cheques in Hand - 19 10 766 -
Balances with Banks
- in Current Accounts 65 61 180 5 72 430 22 87 009
1 33 14 661 46 15 742 34 06 028
10. Other Current Financial Assets
Interest Accrued on Fixed Deposits 6 89 977 7 21 819 8 10 030
Lease Rent Receivable in Future (Refer note 39) 10 78 533 12 13 350 13 65 019
Total 17 68 510 19 35 169 21 75 049
11. Current tax Assets Net
Tax Deducted at Source 90 41 354 1 15 19 738 96 57 971
90 41 354 1 15 19 738 96 57 971
12. Other Current Assets
Balance with Service Tax Authorities 11 09 447 10 91 505 10 54 025
Prepaid Expenses 27 67 187 27 23 468 18 16 323
Others Advances 60 17 52 430 29 46 63 271 23 94 00 189
Total 60 56 29 064 29 84 78 244 24 22 70 537
17MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
As at 31 March As at 31 March As at 1 April
2017 2016 2015
` Numbers ` Numbers ` Numbers
13. Share Capital
Authorised Share Capital
Equity Shares of `10/- each 500 00 00 000 50 00 00 000 500 00 00 000 50 00 00 000 500 00 00 000 50 00 00 000
500 00 00 000 50 00 00 000 500 00 00 000 50 00 00 000 500 00 00 000 50 00 00 000
Issued, Subscribed & Paid up
Equity Shares of ` 10/- each
fully paid up 97 00 00 000 9 70 00 000 97 00 00 000 9 70 00 000 5 00 000 50 000
Total 97 00 00 000 9 70 00 000 97 00 00 000 9 70 00 000 5 00 000 50 000
13.1. a. Reconciliation of numbers of shares outstanding at the beginning and at the end of the period
As at 31 March As at 31 March As at 1 April
2017 2016 2015
Numbers Numbers Numbers
Shares outstanding at the
beginning of the year 9 70 00 000 50 000 50 000
Add: Shares Issued on right
basis during the year - 9 69 50 000 -
Shares outstanding at the
end of the year 9 70 00 000 9 70 00 000 50 000
b. Details of Shareholding more than 5% in the Company
As at 31 March As at 31 March As at 1 April
2017 2016 2015
Number of % holding Number of % holding Number of % holding
Shares in the class Shares in the class Shares in the class
Holding Company- Reliance
Ventures Limited & its Nominees
(Equity Shares of Rs 10 each
fully paid)
Total 9 70 00 000 100% 9 70 00 000 100% 50 000 100%
9 70 00 000 100% 9 70 00 000 100% 50 000 100%
c. Terms/right attached to equity shares
The company has only one class of equity shares having a par value of ` 10 per share. Each holder of equity shares is entitled to
one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held
by the shareholders.
18 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
As at 31 March As at 31 March As at 1 April
2017 2016 2015
(`) (`) (`)
14. Other Equity
Zero Coupon Optionally Fully Convertible
Debentures
As per last Balance Sheet - - -
Add: Issue of Debentures during the year 4125 92 00 000 - -
Total 4125 92 00 000 - -
14.1. The company has issued 412 59 20 000 number of Zero Coupon Optionally Fully Convertible Unsecured having face value of
` 10/- each to Reliance World Trade Private Limited. Total tenure is 15 years from the date of allotment and Company will settle
the outstanding debentures on expiry of 15 years. The company has the option for early conversion at any time by giving one
month notice. The conversion of debentures will be based on face value as at 31st March, 2016. The equity shares arising out of
conversion of debentures will rank pari passu in all respects with the then outstanding shares of the Company on the date of such
conversion except for dividend if declared shall be paid on pro rata basis from the date of allotment of such equity shares. The
debentures are not marketable and will not be listed on any stock exchange in India and abroad.
Reserves & Surplus
Captial Reserve (Pursuant to Scheme of Amalgmation)
As per last Balance Sheet 58 31 72 253 58 52 96 239 -
Add: Accretion during the year - - 58 56 51 967
Less: Merger Expenses Paid - 21 23 986 3 55 728
58 31 72 253 58 31 72 253 58 52 96 239
Retained Earnings
As per last Balance Sheet (34 80 82 743) (43 66 52 761) -
Add: Net Profit/(Loss) for the Year (6 68 67 524) 8 85 70 018 -
(41 49 50 267) (34 80 82 743) (43 66 52 761)
Other Comprehensive Income (OCI)
As per last Balance Sheet (15 45 287) - -
Add: Movement in OCI (net) during the year (49 44 110) (15 45 287) -
(64 89 397) (15 45 287) -
4142 09 32 589 23 35 44 223 14 86 43 478
19MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
As at 31 March As at 31 March As at 1 April
2017 2016 2015
(`) (`) (`)
15. Borrowings
Unsecured Loans
Loans from Related Parties
From Fellow Subsidiary 1942 59 00 000 5331 34 00 000 4871 24 00 000
Total 1942 59 00 000 5331 34 00 000 4871 24 00 000
Loans outstanding as on 31st March, 2017 are repayable on 31st March,2020 and carrying interest @ 9.75% p.a , which is
payable on yearly basis in the month of May of the succeeding Financial Year. The interest rate is revised to 8.5% w.e.f.
1st April, 2017.
16. Provisions- Non Current
Annuity (Refer note 38) 13 51 10 937 16 44 91 892 12 96 32 258
Total 13 51 10 937 16 44 91 892 12 96 32 258
17. Deffered Tax Liabilty (Net)
At the start of the year 8 85 12 040 8 97 43 107 -
Charge/(credit) to profit or loss (Refer note 43) (1 22 89 580) (12 31 067) -
Charge to other comprehensive income - - -
At the end of the year 7 62 22 460 8 85 12 040 8 97 43 107
18. Trade Payables
Trade Payables 2 57 24 791 1 70 38 248 1 83 33 766
Payable to Related Party 76 073 - -
2 58 00 864 1 70 38 248 1 83 33 766
18.1 Trade Payable
The details of amounts outstanding to Micro, Small and Medium Enterprises based on information available with the company
are as under:
Principal amount due and remaining unpaid - -
Interest due on above and the unpaid interest - -
Interest paid - -
Payment made beyond the appointed day during the year - -
Interest due and payable for the period of delay - -
Interest accrued and remaining unpaid - -
Amount of further interest remaining due and payable in succeeding years - -
19. Other Financial Liabilities
Interest Accrued but not Due on Loans 331 79 24 045 662 95 72 396 619 60 07 521
331 79 24 045 662 95 72 396 619 60 07 521
20 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
As at 31 March As at 31 March As at 1 April
2017 2016 2015
(`) (`) (`)
20. Provisions
(a) Provision for Employee Benefits
Provision For Leave Encashment 43 41 831 58 99 117 49 14 186
Provision for Superannuation 11 32 037 16 194 8 278
(b) Others
Provision for Estimated Cost Over Revenue* 1 25 49 256 1 30 58 923 1 31 88 892
Annuity (Refer note 38) 5 03 45 455 2 62 29 344 4 06 14 314
Total 6 83 68 579 4 52 03 578 5 87 25 670
* The Company has recognized estimated loss based on substantial degree of estimation for estimated cost over revenue from
Industrial Township Project. Actual outflow is expected in the subsequent financial years.
21. Other Current Liabilities
Advance received from Customers 30 14 49 862 27 41 75 275 18 54 19 887
Annuity (Refer note 38) 18 19 56 539 16 47 01 532 14 62 66 089
Other Liabilities* 85 68 605 49 12 147 6 72 22 421
Total 49 19 75 006 44 37 88 954 39 89 08 397
* Includes statutory dues and emloyees benefits
21MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
2016 - 17 2015 - 16
(`) (`)
22. Revenue From Operations
Sale of Land 29 90 17 329 114 95 53 125
Lease Premium 50 87 913 40 24 609
Compensation for Compulsorily Acquisition of Land
(Refer Note 36) 10 03 79 932 81 96 654
Finance Income against Lease Rental 3 22 298 1 70 627
Other Operating Income
Common Service Charges 74 86 615 62 49 162
Less:Service Tax Recovered 9 69 709 65 16 906 7 19 778 55 29 384
Total 41 13 24 378 116 74 74 399
23. Other Income
Interest Income on Fixed Deposit with scheduled bank 63 96 263 64 65 852
Interest Received Others 5 29 000 -
Profit on Sale of Property, Plant & Equipment 16 212 48 585
Miscellaneous Income 1 27 382 3 20 255
Total 70 68 857 68 34 692
24. Changes in Inventories
Projects under Development
(Work-in-Progress at commencement) 6141 62 37 879 5531 68 66 681
Projects under Development
(Work-in-Progress at close) 6509 54 15 805 6141 62 37 879
Total Change in Inventories (367 91 77 926) (609 93 71 198)
25. Employee Benefits Expense
Salaries and wages 9 59 34 812 7 29 86 193
Contribution to Provident and other Fund 63 86 621 40 56 139
Staff welfare expenses 61 52 038 48 16 055
Total 10 84 73 471 8 18 58 387
26. Finance Cost
Interest on Unsecured Loan 332 15 77 781 662 95 72 397
Finance Charges 25 88 622 18 27 726
Finance Charges-Discounting Difference 39 83 304 15 98 332
Total 332 81 49 707 663 29 98 455
22 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
27. Other Expenses
Land Cost 32 02 17 740 12 97 22 966
Land Development Cost 9 00 67 162 1 41 35 324
Annuity Expenses 16 38 94 555 18 18 76 882
Salaries & Wages - Contractors 3 44 39 454 3 81 79 997
Rent 1 42 83 523 1 48 77 219
Rates & Taxes 1 28 862 32 831
Insurance 18 03 413 8 77 331
Telephone Expenses 8 58 358 7 17 003
Travelling & Local Conveyance 1 57 31 649 1 38 63 994
Power & Fuel 54 60 499 54 20 041
Repair & Maintenance
- Plant and Machinery 4 58 869 8 57 107
- Buildings 20 29 469 33 17 196
- Others 28 96 385 7 96 916
Professional & Consultancy Fees 2 00 48 967 2 21 14 001
Security Expenses 2 00 56 791 1 80 91 517
Social Programme Expenses 50 58 259 54 16 105
Payment to Auditors (Refer note 27.1) 23 72 956 21 64 342
Director Sitting Fees 5 57 775 7 48 133
Loss on Sale/ Discarding of Property, Plant & Equipment 57 947 6 95 509
General Expenses 3 66 75 080 1 50 99 370
Reversal of Provision for Estimated Cost Over Revenue (5 09 665) (1 29 970)
Total 73 65 88 048 46 88 73 814
27.1 Payment to Auditors (including Service Tax)
Statutory Audit fees 19 55 000 18 32 000
Tax Audit fees 3 56 500 3 20 600
Certification Fees 40 250 -
Out of pocket expenses 21 206 11 742
Total 23 72 956 21 64 342
28. Earning per share (EPS)
Net Profit / (Loss) after tax as per Statement of
Profit and Loss (`), attributable to Equity Shareholders (7 18 11 634) 8 85 70 018
Weighted Average number of equity shares used as
denominator for calculating EPS 9 70 00 000 3 98 92 760
Basic Earning per share (`) (0.74) 2.22
Diluted Earning per share (`)* (0.74) 2.22
Face Value per equity share (`) 10 10
*The effects of ZOFCD on the earning per share are anti-dilutive and hence, the same is not considered for the purpose of
calculation of dilutive earning per share.
2016 - 17 2015 - 16
(`) (`)
23MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
29 Related Party Disclosures
As per Indian Accounting Standard 24, the disclosures of transactions with the related parties are given below:
(i) List of related parties where control exists and related parties with whom transactions have taken place and the relationship:
S. No. Name of the Related Party Relationship
1 Reliance Ventures Limited (RVL) Holding Company
2 Reliance Industries Limited Holding Company of RVL
3 Resolute Land Consortium Projects Limited Subsidiary Company till 29th February, 2016
(Formerly known as Model Economic Township Ltd.)
4 Reliance Jio Infocomm Limited Fellow Subsidiary of Holding Company
5 Reliance Retail Limited Fellow Subsidiary of Holding Company
6 Reliance Industrial Investments and Holdings Limited Fellow Subsidiary of Holding Company
7 Reliance World Trade Private limited Fellow Subsidiary of Holding Company
8 Devashree Commercials Private Limited Subsidiary Company w.e.f 12th Jan,2017
9 Girisha Commercial Private Limited Subsidiary Company w.e.f 12th Jan,2017
10 Cluster Commercial Private Limited Subsidiary Company w.e.f 12th Jan,2017
11 Dignity Mercantile Private Limited Subsidiary Company w.e.f 12th Jan,2017
12 Shri Shrivallabh Goyal, Whole Time Director
13 Shri Sudhir Jain , Chief Financial Officer Key Managerial Personnel
14 Shri Dheeraj Kandhari, Company Secretary
(ii) Transactions and closing balance during the year with the Related Parties: Amount in `
S. Nature of Transactions Holding Holding Subsidiaries Fellow Key
No. (Excluding reimbursements) Company Company Company Subsidiaries Managerial
of RVL of Holding Personnel
Company
(A) Transactions during the year
1. Unsecured Loans Received - - - 776 45 00 000 -
- - - 690 10 00 000 -
2. Unsecured Loans Repaid - - - 4165 20 00 000 -
- - - 230 00 00 000 -
3. Interest on unsecured loan - - - 332 15 77 781 -
- - - 662 95 72 397 -
4. Lease Rent Received - 4 83 656 - - -
- 4 74 617 - - -
5. Payment to Key Managerial Personnel - - - - 2 65 54 720
- - - - 26 28 330
6. Issue of Zero Coupon Optionally Fully - - - 4125 92 00 000 -
Convertible Debentures - - - - -
7. Corporate Guarantee received - 6 00 000 - - -
- 9 59 10 435 - - -
8. Fixed AssetsPurchased/(Sale)(Net) - - - 1 07 140 -
- - - 1 92 388 -
9. Advance for land purchase - - 1 64 899 - -
- - - - -
10. Other Expenses - - - 66 62 840 -
- - - 25 37 398 -
11. Purchase / (Sale) of investments - - 4 00 000 - -
- - (4 25 000) - -
24 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
(B) Balance at the end of the year
1. Unsecured Loans - - - 1942 59 00 000 -
- - - 5331 34 00 000 -
2. Investments - - 4 00 000 - -
- - 75 000 - -
3. Interest accrued but not due - - - 331 79 24 045 -
- - - 662 95 72 397 -
Zero Coupon Optionally Fully Convertible Debentures - - - 4125 92 00 000 -
- - - - -
4. Corporate Guarantee received - 37 84 71 410 - - -
- 37 78 71 410 - - -
5. Advance for land purchase - - 22 73 00 000 - -
- - - - -
6. Advance / Payable - - - (76 073) -
- - - 2 000 -
Note: Figures in italics represent that of previous year.
Disclosure in Respect of Material Related Party Transactions during the year:
Unsecured Loans received includes ` 776 45 00 000 (Previous Year Rs. 690 10 00 000) received from Reliance Industrial
Investments And Holdings Limited.
Unsecured Loans repaid includes ̀ 4165 20 00 000 (Previous Year ̀ 230 00 00 000) paid to Reliance Industrial Investments And
Holdings Limited.
Interest on Unsecured Loan to Reliance Industrial Investments And Holdings Limited ` 332 15 77 781 (Previous year
` 662 95 72 397).
Lease rent from Long term lease of land to Reliance Industries Limited ` 4 83 656 (Previous Year ` 4 74 617)
Zero Coupon Optionally Fully Convertible Debentures includes ` 4125 92 00 000 (Previous Year Nil) issued to Reliance World
Trade Private Limited.
Payment to Key Managerial Personnel includes ` 2 65 54 720 (Previous Year ` 15 39 042).
Corporate Guarantee received during the year ` 6 00 000 (Previous Year ` 9 59 10 435)
Fixed Assets purchases include from Reliance Retail Limited ` 1 07 140 (Previous Year ` 1 92 388).
Advance given for land includes ` 1 00 000 (Previous Year Nil) to Girisha Commercial Private Limited, and ` 64 899 (Previous
Year Nil) to Dignity Mercantile Private Limited.
Other Expenses include purchase / services from Reliance Retail Limited ` 66 62 840 (Previous Year ` 25 37 398).
Investment in Resolute Land Consortium Projects Limited has been diluted by 15% amounting ` 75 000 (Previous Year
` 4 25 000). Investment made in Devashree Commercials Private Limited by ̀ 1 00 000 (Previous Year Nil), Girisha Commercial
Private Limited 1 00 000 (Previous Year Nil), Cluster Commercial Private Limited 1 00 000 (Previous Year Nil) and Dignity
Mercantile Private Limited 1 00 000 (Previous Year Nil).
Balance at the end of the year includes:
Unsecured loan taken from Reliance Industrial Investments And Holdings Limited ` 1942 59 00 000 (previous year
` 5331 34 00 000).
Investment in Devashree Commercials Private Limited ` 1 00 000 (Previous Year Nil), Girisha Commercial Private Limited
` 1 00 000 (Previous Year Nil), Cluster Commercial Private Limited ` 1 00 000 (Previous Year Nil) and Dignity Mercantile
Amount in `
S. Nature of Transactions Holding Holding Subsidiaries Fellow Key
No. (Excluding reimbursements) Company Company Company Subsidiaries Managerial
of RVL of Holding Personnel
Company
25MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
Private Limited ` 1 00 000 (Previous Year Nil) .
Interest accrued but not due to Reliance Industrial Investments And Holdings Limited ` 331 79 24 045 (Previous Year
` 662 95 72 397).
Zero Coupon Optionally Fully Convertible Debentures issued to Reliance World Trade Private Limited ` 4125 92 00 000
(Previous Year Nil).
Corporate guarantee provided by Reliance Industries Limited ` 37 84 71 410 (previous year ` 37 78 71 410).
Advance for land purchase to Devashree Commercials Private Limited ` 13 91 00 000 (Previous Year ` 13 91 00 000), Girisha
Commercial Private Limited ` 2 45 00 000 (Previous Year ` 2 71 00 000), Cluster Commercial Private Limited ` 2 05 00 000
(Previous Year ` 2 35 00 000) and Dignity Mercantile Private Limited ` 4 32 00 000 (Previous Year ` 1 95 00 000).
Advance/(Payable) for services to Reliance Retail Limited ` (76 073) (Previous Year ` 2 000)
Note:
The above transactions disclosed are entered during the period of existence of related party relationship. The balance and
transactions are not disclosed after cessation of related party relationship.
29.1 Compensation of Key managerial personnel
The remuneration of director and other member of key management personnel during the year was as follows:
S.N. Particulars 2016-17 2015-16
1. Short term benefits 2 65 54 720 26 28 330
2. Post-employment benefits 71 77 317 66 78 376
Total 3 37 32 037 93 06 706
30 Contingent Liability & Commitments
2016 - 17 2015 - 16
(`) (`)
Contingent Liabilities
(i) Bank Guarantees 37 84 71 410 37 78 71 410
(ii) In respect of private purchase of land by the Company, 1 writ and 1 revision second appeal are pending against the
Company in Punjab and Haryana High Court and 32 civil suits (previous year 45 civil suits) of various nature are pending
in district courts. Company is of the view that most of these cases are not tenable and no material liability will arise.
Commitments
Others
a. Estimated amount of contracts remaining to be executed as on 11 40 91 343 2 82 01 495
31st March, 2017 (net of advances) and not provided for
b. MoUs executed with Land Sellers (net of advances) 3 63 68 791 5 51 16 818
c. Estimated cost to be incurred in connection with development of 25 73 50 446 26 45 23 527
Industrial colonies under license issued by Directorate of Town &
Country Planning, Government of Haryana
d. Rent of offices for unexpired period of rent agreement 11 95 72 444 2 03 34 058
31 Capital Management
The Company adheres to robust capital Management framework. It proactively reviews its debt structure and tries to optimize
the impact of finance cost by adopting suitable debt mix.
26 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
32 Financial Instruments
The financial assets are valued at fair value using discounted cash flow analysis. Amount in `
Fair value measurement hierarchy
Particulars As at 31st March, 2017 As at 31st March, 2016 As at 1st April, 2015
Carrying Level of Carrying Level of Carrying Level of
amount inputs amount inputs amount inputs
used used used
Financial Assets
At Amortized Cost
Trade Receivable 11 43 396 - 3 61 740 - 38 14 570 -
Cash and Cash Equivalent 1 33 14 661 - 46 15 742 - 34 06 028 -
Other Financial Asset 10 09 20 744 - 8 66 65 936 - 8 81 19 166 -
At FVTPL - - - - - -
At FVTOCI - - - - - -
Financials Liability
At Amortised Cost
Trade Payable 2 58 00 864 - 1 70 38 248 - 1 83 33 766 -
Other Financials Liability 331 79 24 045 - 662 95 72 396 - 619 60 07 521
At FVTPL - - - - - -
At FVTOCI - - - - - -
Interest rate risk
The exposure of the Company’s borrowings to interest rate changes at the end of the reporting period is as follows:
Amount in `
Particulars As at As at As at
31st March, 2017 31st March, 2016 1st April, 2015
Long term loans 1942 59 00 000 5331 34 00 000 4871 24 00 000
Impact on interest expenses for the year on 1% change in interest rate
Interest rate sensitivity As at 31st March, 2017 As at 31st March, 2016
Up Move Down Move Up Move Down Move
Impact on equity - - - -
Impact on Profit or Loss - - - -
Credit Risk
Credit risk is the risk that a customer or counter party to a financial instrument fails to perform or pay the amounts due causing
financial loss to the company. Credit risk arises from company’s activities in investments and outstanding receivables from
customers.
The company has prudent and conservative process for managing its credit risk arising in the course of its business activities.
Sale of developed plots /un-developed plots is made on receipt of full amount of consideration. The company has payment delay
risk on recovery of lease rentals and common maintenance charges from customers setting up their units in licensed colonies of
the company.
Liquidity Risk
Liquidity risk arises from the company’s inability to meet its cash flow commitments on time. Since the company is subsidiary
of Reliance Industries Limited, the cash flow deficits are funded by its holding company.
27MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
33 The Company’s activities during the year revolved around development of land and Industrial Township Project (Referred to in
Note no. 1). Considering the nature of Company’s business and operations, there is only one operating segment as per Indian
Accounting Standard 108 – “Operating Segments”.
34 Details of loans given, investments made and guarantee given covered under section 186 (4) of Companies Act 2013 are as
under: Amount in `
S.N. Name of company As at As at
31st March, 2017 31st March, 2016
(A) Investments in full paid up equity shares
1. Resolute Land Consortium Project Limited - 75 000
2. Devashree Commercials Private Limited 1 00 000 -
3. Girisha Commercials Private Limited 1 00 000 -
4. Cluster Commercial Private Limited 1 00 000 -
5. Dignity Mercantile Private Limited 1 00 000 -
35 Details of Specified Bank Notes (SBN) held and transacted during the period 08.11.2016 to 30.12.2016 are as under:
Amount in `
SBN Other Total
denomination
notes
Closing cash in hand as on 08.11.2016 53 70 000 69 48 445 1 23 18 445
(+) Permitted receipts - 2 05 890 2 05 890
(-) Permitted payments - 3 36 000 3 36 000
(-) Amount deposited in Banks 53 70 000 - 53 70 000
Closing cash in in hand as on 30.12.2016 - 68 18 335 68 18 335
36 During the year the Government of Haryana (GoH) has acquired 9.62 acres (Previous Year 1.19 acres) land for the public
purpose out of the private purchased land of the Company. Cost of this land amounting to ` 8 09 15 429 (Previous Year
` 83 79 739) and compensation of ` 10 03 79 932 (Previous Year ` 81 96 654) received by the company from GoH on such
compulsory acquisition of land have been recognized in the Statement of Profit and Loss.
37 During the year, the Company made investments in equity shares of four private companies, namely Devashree Commercials
Private Limited, Girisha Commercials Private Limited, Cluster Commercial Private Limited and Dignity Mercantile Private
Limited, and as a result these companies became wholly owned subsidiaries of the Company on 12th January, 2017. Subsequently,
these subsidiary companies filed a Scheme of Amalgamation (the Scheme) with the Company to Central Government under
section 233 of the Companies Act 2013. The approval of the Central Government is awaited.
38 For the land purchased by the Company, the Company has formulated its own annuity scheme on voluntary basis for the payment
of annuity to land sellers meeting the eligibility criteria and has provided for annuity on annual basis. The amount of undiscounted
annuity provision as at 31st March, 2017 is ` Rs 18 19 56 538 (Previous year `16 47 01 531). In respect of land covered under
licensed area and land sold/leased out, the Company has decided to pay annuity on yearly basis to land sellers, irrespective of
their meeting the eligibility conditions and in such cases, has made the provision for full term of 33 years. The amount of
undiscounted annuity provision for 33 years as at 31st March, 2017 is ` 67 02 83 875 (Previous year ` 66 49 32 564). During the
year, Company has adopted Indian Accounting Standards with transition date being 1st April, 2015 and as per the requirement of
Ind AS- 37 (provisions, contingent liabilities and contingent assets), it has made fair value of such annuity provisions. Thus after
carrying out the adjustment as required, the discounted amount of annuity provision as on 31st March, 2017 stands at
` 36 74 12 930 (Previous year – ̀ 35 54 22 766). Such provisions will be re-measured in subsequent years as per the requirement
of Indian Accounting Standards.
28 MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
39 The Company executed long term lease agreements with three of its customers for a period of 99 years. As per the terms of lease,
it received one time lease premium and in addition receives lease rentals on annual basis during the lease period. Subsequent to
adoption of Indian Accounting Standards with transition date as at 1st April, 2015, it has computed the fair value of lease rentals
receivable in future. It has thus gross lease rentals receivable with discounted value of minimum lease payments receivable as at
end of each of the reporting period as under:
Particulars As at As at As at
31st March, 2017 31st March, 2016 1st April, 2015
1. Gross lease rentals receivable 15 30 06 607 15 45 42 253 15 60 77 899
2. Present value of minimum lease payments receivable 97 30 767 1 09 44 117 1 23 09 136
(a) Not later than one year 10 78 533 12 13 350 13 65 019
(b) Later than one year but not later than five years 38 40 190 43 20 214 48 60 241
(c) Later than five years 48 12 044 54 10 553 60 83 876
3. Unearned Finance Income 14 32 75 840 14 35 98 136 14 37 68 763
40 As per the requirement of Ind AS- 37 (provisions, contingent liabilities and contingent assets), following are the details of
provisions appearing as on each of the following reporting period: (`)
S.N. Particulars As at As at As at
31st March 2017 31st March 2016 1st April, 2015
1. Balance at the beginning 35 54 22 766 31 65 12 661 -
2. Add provisions made during the year 16 38 94 555 18 18 76 882
3. Less:
(a) Amount used/charged against the provisions
during the year 15 58 87 695 14 45 65 109 -
(b) Unused amount reversed during the year - - -
4. Increase during the year in undiscounted
amount arising from unwinding of discounting 39 83 304 15 98 332
5. Balance at the end 36 74 12 930 35 54 22 766 31 65 12 661
41 Employee Benefits
As per Indian Accounting Standard - 19 “Employee Benefits” the disclosures as defined are given below:
Defined Contribution Plans:
Contribution to Defined Contribution Plan, recognized as expenses for the year is as under:- (`)
2016-17 2015-16
Employer’s Contribution to Provident Fund 40 83 366 23 57 466
Employer’s Contribution to Superannuation Fund 2 33 692 1 10 998
Employer’s Contribution to Pension Scheme 7 48 663 6 81 502
29MODEL ECONOMIC TOWNSHIP LIMITED
Notes on Financial Statements for the year ended 31st March, 2017
Defined Benefit Plan
I. Reconciliation of opening and closing balances of Defined Benefit Obligation (`)
Particulars Gratuity (Funded)
2016-17 2015-16
Defined Benefit Obligation at beginning of the year 68 64 404 56 97 320
Current Service cost 9 11 982 7 52 506
Interest Cost 5 49 152 4 55 786
Liability Transferred In/Acquisitions - 81 965
Actuarial (gain) / loss on obligations due to change in financial assumptions 2 48 963 -
Actuarial (gain) / loss 46 75 502 15 78 486
Benefits paid (7 18 592) (17 01 659)
Defined Benefit obligation at year end 1 25 31 411 68 64 404
II. Reconciliation of opening and closing balances of fair value of Plan Assets (`)
Particulars Gratuity (Funded)
2016-17 2015-16
Fair Value of Plan Assets at beginning of the year 99 68 708 58 52 579
Expected Return on Plan Assets 7 97 497 4 68 206
Liability Transferred In/Acquisitions - 81 965
Actuarial Gain / ( Loss) (19 645) 33 199
Employers Contribution - 52 34 418
Benefits paid (7 18 592) (17 01 659)
Fair value of Plan assets at year end 1 00 27 968 99 68 708
III. Reconciliation of fair value of Assets and Obligations
Particulars Gratuity (Funded)
2016-17 2015-16
Fair value of Plan Assets 1 00 27 968 99 68 708
Present value of Obligation (1 25 31 411) ( 68 64 404)
Net (Liability)/Asset Recognized in the Balance Sheet (25 03 443) 31 04 304
IV. Expenses recognized during the year
Particulars Gratuity (Funded)
2016-17 2015-16
In Income Statement
Current Service Cost 9 11 982 7 52 506
Interest Cost (2 48 345) (12 420)
Net Cost 6 63 637 7 40 086
In Other Comprehensive Income
Actuarial (Gain) / Loss 49 24 465 15 78 486
Return On Plan Assets 19 645 (33 199)
Net (Income)/ Expense For the period Recognized in OCI 49 44 110 15 45 287
30 MODEL ECONOMIC TOWNSHIP LIMITED
V. Investment Details (`)
Particulars Gratuity (Funded)
2016-17 2015-16
Insurance Fund 1 00 27 968 99 68 708
VI. Actuarial assumptions
Particulars Gratuity (Funded)
2016-17 2015-16
2006-08 2006-08
(Ultimate) (Ultimate)
Expected rate of return on Plan Assets (per annum) 7.46% 8.00%
Discount Rate (per annum) 7.46% 8.00%
Rate of escalation in Salary (per annum) 6.00% 6.00%
Rate of Employee Turnover 2.00% 2.00%
The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion
and other relevant factors including supply and demand in the employment market. The above information is certified by the
actuary.
The Expected Rate of Return on Plan Assets is determined considering several applicable factors, mainly the composition of
Plan Assets held, assessed risks, historical results of return on Plan Assets and the Company’s policy for Plan Assets.
VII. The expected contributions for Defined Benefit Plan for the next financial year will be in line with FY 2016-17.
VIII.Sensitivity Analysis
Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary
increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of
the assumptions occurring at end of the reporting period , while holding all other assumptions constant. The result of Sensitivity
analysis is given below:
Particulars As at 31st March, 2017 As at 31st March, 2016
(`) (`)
Decrease Increase Decrease Increase
Projected Benefit Obligation on Current Assumption 1 25 31 411 68 64 404
Change in Discounting Rate (Delta Effect of +/-0.5%) 2 47 434 (2 31 134) 2 10 623 ( 1 96 865)
Change in rate of Salary Increase (Delta Effect of +/-0.5%) ( 2 35 284) 2 49 740 (2 01 374) 2 13 692
Change in rate of Employee Turnover (Delta Effect of +/-0.5%) (29 430) 27 864 ( 35 332) 33 483
These plans typically expose the Company to actuarial risks such as: investment risk, interest risk, longevity risk and salary
risk.
Investment risk: The present value of defined benefit plan liability is calculated using a discount rate which is determined byreference to market yields at the end of reporting period on investment with LIC.
Interest risk: A decrease in the interest rate will increase the plan liability; however this will be partially offset by an increasein the return on plan debt investments.
Longevity risk: The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortalityof plan participants both during and after their employment. An increase in the life expectancy of the planparticipants will increase the plan’s liability.
Salary risk: The present value of defined plan liability is calculated by reference to the future salaries of plan participants.
As such, an increase in the salary of the plan participants will increase the plan’s liability.
Notes on Financial Statements for the year ended 31st March, 2017
31MODEL ECONOMIC TOWNSHIP LIMITED
42 Taxation (`)
Particulars Year ended
31st March, 2017 31st March, 2016
Income tax recognized in Statement of profit and loss
Current tax - -
Deferred tax (1 22 89 580) (12 31 067)
The income tax expenses for the year can be reconciled to the accounting profit as follows: (`)
Particulars Year ended
31st March, 2017 31st March, 2016
Profit before tax ( 7 96 03 609) 8 70 36 637
Applicable tax rate 30.09% 30.09%
Computed tax expense (2 45 97 515) 2 68 94 320
Tax effect of:
Exempted Income - -
Expenses disallowed 1 12 33 356 -
Additional allowances net of MAT credit - (3 10 17 948)
Current tax provision (A) (1 33 64 159) (41 23 628)
Incremental deferred tax liability on account of tangible and
intangible assets 3 33 090 (8 601)
Incremental deferred tax asset on account of financial assets
and other items (1 26 22 670) ( 12 22 465)
Deferred tax provision (B) ( 122 89 580) ( 12 31 066)
Tax expenses recognized in Statement of Profit and Loss (A+B) ( 2 56 53 739) ( 53 54 694)
Effective tax rare (32.22%) (6.15%)
43 The Deferred Tax Liability/Asset comprise of the following: (`)
As at Charge/ Others As at
1st April,2016 (Credit) to 31st March,2017
profit or loss
Deferred Tax Liabilities /Asset in relation to
Property, plant and equipment 7 88 010 3 33 090 - 4 54 920
Financial assets at FVTPL 18 27 831 4 86 205 - 13 41 626
Financial assets at FVTOCI (9 11 27 881) (131 08 875) - (7 80 19 006)
Total (8 85 12 040) (1 22 89 580) - (7 62 24 460)
Notes on Financial Statements for the year ended 31st March, 2017
32 MODEL ECONOMIC TOWNSHIP LIMITED
44 FIRST TIME IND AS ADOPTION RECONCILIATIONS
44.1 Effect of Ind AS adoption on the stand alone balance sheet as at 31st March, 2016 and 1st April, 2015
`
As at 31st March 2016 As at 1st April 2015
Previous Effect of As per Ind Previous Effect of As per Ind
GAAP transition to AS balance GAAP transition to AS balance
Ind AS sheet Ind AS sheet
Assets
Non-current Assets
Property , Plant and Equipments 1 41 39 431 - 1 41 39 431 1 44 18 659 - 1 44 18 659
Other Intangible Assets 1 23 272 - 1 23 272 1 61 497 - 1 61 497
Financial Assets
Investments 75 000 - 75 000 5 00 000 - 5 00 000
Other non-current assets 14 83 34 348 97 30 768 15 80 65 116 14 86 79 087 1 09 44 117 15 96 23 204
Total non-current assets 16 89 57 420 97 30 768 17 85 36 517 16 37 59 242 1 09 44 117 17 47 03 360
Current Assets
Inventories 6149 20 94 318 (7 58 56 439) 6141 62 37 879 5539 27 23 122 (7 58 56 441) 5531 68 66 681
Financial Assets
Trade Receivables 3 61 740 - 3 61 740 38 14 570 - 38 14 570
Cash and cash equivalents 46 15 742 - 46 15 742 34 06 028 - 34 06 028
Others 7 21 819 - 7 21 819 8 10 030 - 8 10 030
Current Tax Assets (Net) 1 15 19 738 - 1 15 19 738 96 57 971 - 96 57 971
Other current assets 29 84 78 244 12 13 350 29 96 91 594 24 22 70 537 13 65 019 24 36 35 556
Total current assets 6180 77 91 601 (7 46 43 089) 6173 31 48 512 5565 26 82 258 (7 44 91 422) 5557 81 90 836
Total Assets 6197 04 63 653 (6 49 12 324) 6190 55 51 330 5581 64 41 500 (6 35 47 305) 5575 28 94 195
Equity and Liabilities
Equity
Equity share capital 97 00 00 000 - 97 00 00 000 5 00 000 - 5 00 000
Other Equity (8 62 28 701) 31 97 72 924 23 35 44 223 (6 77 36 286) 21 63 79 763 14 86 43 477
Total equity 88 37 71 299 31 97 72 924 120 35 44 223 (6 72 36 286) 21 63 79 763 14 91 43 477
Non-current liabilities
Financial liabilities
Long term borrowings 5331 34 00 000 - 5331 34 00 000 4871 24 00 000 - 4871 24 00 000
Long term Provision –Annuity 64 59 37 867 (48 14 45 975) 16 44 91 892 52 65 93 580 (39 69 61 321) 12 96 32 258
Deferred Tax Provision - 8 85 12 040 8 85 12 040 - 8 97 43 107 8 97 43 107
Total non-current liabilities 5395 93 37 867 (39 29 33 935) 5356 64 03 932 4923 89 93 580 (30 72 18 214) 4893 17 75 365
Current liabilities
Financial liabilities
Trade and other payables 1 70 38 248 - 1 70 38 248 1 83 33 766 - 1 83 33 766
Other financial liabilities 662 95 72 397 - 662 95 72 397 619 60 07 521 - 619 60 07 521
Other Current Liabilities 42 30 56 164 2 07 32 789 44 37 88 953 37 81 95 238 2 07 13 159 39 89 08 396
Short Term Provisions 5 76 87 678 (1 24 84 100) 4 52 03 578 5 21 47 682 65 77 988 5 87 25 670
Total current liabilities 712 73 54 488 82 48 688 713 56 03 176 664 46 84 207 2 72 91 147 664 57 46 010
Total Equity and Liabilities 6197 04 63 654 (6 49 12 324) 6190 55 51 330 5581 64 41 500 (6 35 47 305) 5575 28 94 195
Notes on Financial Statements for the year ended 31st March, 2017
33MODEL ECONOMIC TOWNSHIP LIMITED
44.2 Effect of Ind AS adoption on Statement of profit and loss for the year ended 31st March, 2016
`
Year ended 31/03/2016
Previous Effect of transition As per Ind AS
GAAP to Ind AS balance sheet
INCOME
Revenue from operations 116 88 59 048 (13 84 648) 116 74 74 399
Other Income 68 34 692 - 68 34 692
Total Income 117 56 93 740 (13 84 648) 117 43 09 091
EXPENDITURE
Change in inventories (609 93 71 196) - ( 609 93 71 198)
Employee benefit expenses 8 34 03 673 (15 45 287) 8 18 58 387
Finance cost 663 14 00 123 15 98 332 663 29 98 455
Depreciation and Amortization expenses 29 12 996 - 29 12 996
Other Expenses 57 40 18 887 (10 51 45 074) 46 88 73 814
Total Expenditure 119 23 64 483 (10 35 46 742) 108 72 72 454
Profit/(loss) before tax (1 66 70 743) (10 21 62 094) 8 70 36 637
Tax expenses
Current tax - - -
Deferred tax - (12 31 067) (12 31 067)
Previous year tax (3 02 314) - (3 02 314)
Profit/(loss) for the year (1 63 68 429) 10 33 93 161 8 85 70 018
44.3 Reconciliation of Profit and Other Equity between Ind AS and previous GAAP (`)
S.N. Nature of Adjustment Profit for the Other EquityYear ended
As at As at As at
31st March, 2016 31st March, 2016 1st April, 2015
Net profit/(loss) /Other Equity as per previous
Indian GAAP (1 63 68 429) (8 62 28 701) (6 77 36 286)
Adjustment for Merger Expenditure 21 23 986 - -
Net profit/(loss) /Other Equity as per previous
Indian GAAP after adjustment of merger expenses (1 84 92 415) (8 62 28 701) (6 77 36 286)
Adjustments for:
1. Fair value of annuity (refer note a) 10 35 46 742 39 73 40 847 29 38 13 733
2. Deferred Tax liability (refer note b) 12 31 067 (8 85 12 040) (8 97 43 107)
3. Fair value of lease rents (refer note c) (13 84 648) 1 09 44 117 1 23 09 136
Subtotal ( 1 to 3) 10 33 93 161 31 97 72 924 21 63 79 762
Net profit/(loss) before OCI/Other equity
as per Ind As 8 49 00 746 23 35 44 223 14 86 43 476
Notes on Financial Statements for the year ended 31st March, 2017
34 MODEL ECONOMIC TOWNSHIP LIMITED
Notes
(a) Fair value of annuity- As per Ind AS -, the provisions made for annuity payable over a long period is required to be accounted
at discounted value as per Ind-AS as against the full value as per the previous Indian GAAP. Accordingly the difference between
the value of provision for annuity and discounted value has been adjusted to the retained earnings. The consequential impact of
cost of land inventory already sold and projects in development has also been recognized in the retained earnings.-Similarly,
consequential impact on cost of land inventory remaining un-sold has been adjusted in the carrying cost of land inventory.
(b) Deferred tax – The impact of transition adjustments together with Ind-AS mandate of using balance sheet approach (against
profit and loss approach in the previous Indian GAAP) for computation of deferred taxes has resulted in charge to the Reserves,
on the date of transition, with consequential impact to the statement of Profit and Loss for subsequent periods.
(c) Adjustment for property given on lease – As per Ind-AS, the land given on long term lease is required to be treated as finance
lease under Ind-AS where as in the earlier Indian GAPP such transaction were excluded from lease accounting. The lease rentals
receivable in future have been discounted and the resultant change due to change in the accounting policy as on the transition
date has been adjusted to retained earnings.
45. The financial statements were approved for issue by Board of directors on 10th April, 2017.
As per our Report of even date For and on behalf of the Board
For Chaturvedi & Shah Shrivallabh Goyal Anil SharmaFirm Regd No :101720W (Director) (Director)Chartered Accountants DIN- 00021471 DIN- 05212373
R. Koria Sudhir Jain Dheeraj KandhariPartner (Chief Financial Officer) (Company Secretary)Membership No : 35629 Membership No : 084440 Membership No : A20934
Place : Mumbai Place : GurgaonDate : 10th Apri1,2017 Date : 10th Apri1,2017
Notes on Financial Statements for the year ended 31st March, 2017